pg 28

Question 1

“four-point test” that the Canada Revenue Agency uses to

determine which type of relationship exists. “Employee or Self-Employed?”

Answer 1

control, ownership of tools, chance of profit/risk of loss, and integration

Question 2

The primary issue here is who’s running the business? Does the employer have the right to hire
or fire, determine the wage or salary to be paid, and decide on the time, place, and manner in
which the work is to be done?

Answer 2

Independent contractor vs. employee: Control

Question 3

An obvious point, one would think; a contractor would supply his own tools. However, because
it’s customary for employees to supply their own tools in some tr ades (think of painters and
garage mechanics, for example), the cost of using the tools is a much better indication, according
to the Canada Revenue Agency.

Answer 3

Independent contractor vs. employee: Ownership of tools

Question 4

In this case, whether the practitioner is involved in an employer-employee relationship or a
business relationship depends on the financial involvement. Does the contractor have a chance of
making a profit?

Answer 4

Independent contractor vs. employee: Chance of profit/risk of loss

Question 5

This appears to be a further attempt to define the intention of the parties involved.

The Canada Revenue Agency states, “Where the worker integrates the payer’s activities to his
own commercial activities, a business relationship probably exists.”

Answer 5

Independent contractor vs. employee: Integration